What is the PPF interest rate for FY 2025-26?

The PPF interest rate for FY 2025-26 is 7.1% per annum, compounded annually. The rate is set by the government and reviewed quarterly.

Is PPF better than ELSS for 80C?

PPF guarantees 7.1% tax-free (EEE) with zero risk. ELSS has historically returned 13–16% CAGR but is market-linked with 3-year lock-in and 12.5% LTCG tax beyond ₹1.25 lakh gain. For long horizons (10yr+), ELSS has historically built more wealth. PPF wins on safety and guaranteed returns.

PPF Calculator 2025-26 — Maturity at 7.1% Interest Rate

PPF Calculator India — Public Provident Fund Returns, Interest & Maturity 2025

The Public Provident Fund (PPF) is India's only fully tax-free investment under the EEE (Exempt-Exempt-Exempt) category — contributions qualify for 80C deduction, interest is tax-free, and maturity is tax-free. At 7.1% tax-free, PPF beats most bank FDs for investors in the 20–30% tax slab.

7.1%

Current PPF interest rate — revised quarterly by Govt. of India

EEE

Triple tax-exempt: 80C + tax-free interest + tax-free maturity

₹1.5L

Maximum yearly deposit in a PPF account

15 yrs

Lock-in period, extendable in 5-year blocks indefinitely

📐 Formula & How It Works

PPF uses annual compounding: Balance = Σ (Annual Deposit × (1 + r)^(15−year))

Where r = 7.1% p.a. Interest is calculated on the minimum balance between 5th and last day of each month. Always deposit before the 5th of April to earn interest for that full month.

Example: ₹1.5L/year for 15 years at 7.1% → Maturity = ₹40.68 Lakhs (invested ₹22.5L, gain ₹18.18L — fully tax-free).

🛠️ How to Use This Calculator

Step 1: Enter your annual investment — the maximum is ₹1.5 lakh per financial year (can invest in lump sum or up to 12 installments).
Step 2: Choose tenure — default is 15 years but you can extend in 5-year blocks. ₹1.5L/year for 30 years grows to ₹1.54 crore.
Step 3: See the maturity value, total invested, and tax-free interest earned.
Step 4: Compare with FD (taxable) — at 7.5% FD for a 30% slab investor, effective after-tax yield is only 5.25%. PPF at 7.1% wins clearly.
Step 5: Plan 80C: PPF can absorb the full ₹1.5L 80C limit. Check if EPF already fills part of it.

💡 Pro Tips

✓ Deposit before 5th April every year for maximum interest — investing on April 1 earns interest for the full year.

✓ PPF allows partial withdrawal from Year 7 — up to 50% of balance at end of 4th year, whichever is lower.

✓ Loan against PPF is available from Year 3 to Year 6 at 1% above PPF rate — cheaper than personal loans.

✓ Extend PPF in 5-year blocks after maturity with contributions — it keeps compounding tax-free indefinitely.

✓ Minors can also have PPF accounts (opened by parent) — start early to maximise compounding.

❓ Frequently Asked Questions

What is the current PPF interest rate? +

The PPF interest rate for FY 2025-26 is 7.1% per annum, compounded annually. The rate is reviewed quarterly by the Government of India but has remained at 7.1% since April 2020.

Can I invest more than ₹1.5 lakh in PPF? +

No. The maximum annual deposit in a PPF account is ₹1.5 lakh. Deposits above this limit earn no interest and are not eligible for 80C deduction. You can open a separate PPF account for a minor child to invest an additional ₹1.5L.

What happens if I miss a PPF deposit? +

The minimum annual deposit is ₹500. If you miss a year, your account becomes inactive and must be revived by paying ₹500 + ₹50 penalty per inactive year. Partial years still count toward the 15-year lock-in.

Is PPF better than ELSS for tax saving? +

ELSS has a shorter 3-year lock-in and historically delivers higher returns (12–15%) but returns are market-linked and LTCG of 10% applies above ₹1.25L. PPF gives guaranteed 7.1% fully tax-free with no market risk — better for conservative investors, especially in the 30% tax bracket.

Can I have two PPF accounts? +

You cannot have two PPF accounts in your own name. However, you can open one in a minor's name (where you are guardian). HUF cannot open a PPF account.

What is the PPF maturity process? +

After 15 years, submit Form C at your bank/post office to withdraw the full amount tax-free. Alternatively, extend in 5-year blocks with or without fresh contributions using Form H.

PPF Calculator — Returns, Lock-in, Extension & Withdrawal Rules

The Public Provident Fund (PPF) is India's safest long-term investment — government-backed, tax-free at all stages (EEE — Exempt, Exempt, Exempt). The current rate is 7.1% p.a., reviewed quarterly by the government. The 15-year lock-in can be extended in 5-year blocks indefinitely. Maximum annual investment: ₹1.5 lakh. Minimum: ₹500. Investing ₹1.5 lakh/year for 15 years at 7.1% generates approximately ₹40.68 lakhs — all tax-free, unlike FD interest which is fully taxable.

Partial withdrawal is allowed from Year 7 onwards (up to 50% of balance at end of 4th year preceding). Loans against PPF are available from Year 3 to Year 6 at 1% above PPF rate. The key advantage over ELSS: PPF returns are guaranteed — market crashes don't affect your PPF balance. The trade-off: lower expected returns than equity over 15+ year horizons.